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Why are oil prices falling? Do you think they will bottom out? what price?
Oil prices are falling because they were run up by speculation in the first place. Oil ran around $35/barrel for many years prior to the recent oil bubble drove it to $160 and then popped.
They might return to that level while the world economy is floundering, but my guess is they'll stabilize again at the $40-$45 range for the next few years. However, with this oil shock in our memories, a new US administration highly motivated to support alternative energy sources, and a real technological ability to move away from oil which has never existed before (nanosolar is on the brink of viability and will totally change the world energy equation), I think the oil heyday is over. 10 years from now, oil will be trading for $20/barrel and drifting ever lower.
The oil market is volatile - prices will fluctuate for the foreseeable future - higher prices are around the corner.
